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This publication responds to calls in regional and global forestry forums to strengthen capacity for effectively developing and implementing payment schemes for environmental services in sub-Saharan Africa. In particular, the African Forestry and Wildlife Commission, at its 18th session, called for enhancement of the institutional capacities of member countries and the sharing of knowledge on payment schemes for forest environmental services at the national and subregional levels. The publication focuses on forest-based environmental services, such as carbon sequestration, watershed protection and biodiversity conservation. It comes at a time when forests are at the centre of global responses to the challenge of climate change and when payment schemes for forest environmental services are increasingly seen as a valuable means of generating revenues for local economic development from sustainable forest management. It compiles lessons applicable in sub-Saharan Africa generated by initiatives in the subregion and in other regions relevant to sub-Saharan Africa.